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Bond yield increases put a damper on Conservative funds performance for the month of October


19/11/2019

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The tables below show the performance of our KiwiSaver and investment funds to the end of October 2019.

Here's what influenced the markets last month:

Bonds:

The lift in bond yields both here in NZ and globally put a dampener on returns for more conservative investment strategies. 10-year NZ government bond yield rose 0.22% to finish the month at 1.31%. 

Australasian equities

Trans-Tasman share markets were lower over the month but still significantly higher than this time last year. The NZ market fell on concerns for the future of the Tiwai Point Aluminum smelter. Reports are the owners, Rio Tinto, may close the plant. The smelter uses over 10% of New Zealand's electricity. As a result, the listed energy stocks took a hammering.

International shares

US shares hit record highs on optimism for a US-China trade deal. Positive US corporate earnings added to the upward momentum and investor confidence.

NZD

The recent NZD slide concluded in October with the trade-weighted index up just over 1%.  The NZD had briefly fallen to 10-year lows against the USD (around 62c) before finding its feet and lifting above 64c again. 

 

Name Inception
Date
Since
Inception
Annualised
1
Month
3
Months
6
Months
1
Year
2
Years
Annualised
KiwiSaver Scheme
Simplicity Growth Fund 01.09.16 10.76% 0.50% 2.18% 5.77% 15.23% 9.43%  
Simplicity Balanced Fund 01.09.16 8.14% 0.19% 1.90% 5.41% 13.32% 8.40%  
Simplicity Conservative Fund 01.09.16 5.84% -0.36% 1.26% 4.58% 10.29% 6.73%  
Simplicity Guaranteed Income Fund 24.10.17  7.26% 0.17% 1.82% 5.09% 11.87%    
 
Investment Funds
Simplicity Growth Investment Fund 03.04.17  10.22% 0.47% 2.24% 5.84% 15.39% 9.54%  
Simplicity Balanced Investment 
Fund
03.04.17  8.35% 0.17% 1.91% 5.38% 13.58% 8.38%  
Simplicity Conservative Investment 
Fund
03.04.17  6.11% -0.35% 1.30% 4.56% 10.32% 6.59%  
Simplicity NZ Bond Fund 03.04.18  7.21% -1.09% 1.07% 4.13% 8.09%    
Simplicity NZ Share Fund 03.04.18  19.19% -1.11% -0.23% 8.40 24.26%  

 

These returns are to 31 October 2019 and are before tax and after fund management fees.

 

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